service contract signed by ex-employee
Discussion
A company I'm involved with have contracts for a number of service providers such as: website hosting, waste disposal, advertising that were organised by then current manager and assistant operations managers.
They have both left within the last few months and after some investigation by myself and the owner there are a number of issues due to their reckless signing of 12 or 24 contracts for services not really suitable for the company...
Anyone have any idea where one would stand regarding cancelling service contracts signed by ex-employees ?
They have both left within the last few months and after some investigation by myself and the owner there are a number of issues due to their reckless signing of 12 or 24 contracts for services not really suitable for the company...
Anyone have any idea where one would stand regarding cancelling service contracts signed by ex-employees ?
davepoth said:
Unless you can prove malfeasance (i.e. they benefited from signing those contracts to the detriment of the company) you are out of luck.
Unfortunately not the case. Just rubbish managers being lazy and taking first easy options rather than doing some homework or shopping around... Good example was signing up a new waste company, without checking existing contracter still had 8 months to run before we could cancel.
Ouch.
As above, you're stuck with it.
Now that you have it all to hand make sure you read the termination clauses very carefully, that you understand when the notices and so on have to be served, and if they have to be served a certain way.
Then do the draft letters and diaries when you have to send them out. Had similar with a client a few years back who i advised to do this, they didn't and the next thing was they were tied for another 3 years due to the rolling contract clause and notice being served at the wrong time.
Remember that these are COMMERCIAL business to business contract and so UCTA '77 does not apply and, within reason, they can impose whatever terms and conditions they like in the contract provided someone is stupid enough to sign it...
This is an even hotter area of the law than ever before with things the way they are and everyone trying to strip unnecessary costs.
As above, you're stuck with it.
Now that you have it all to hand make sure you read the termination clauses very carefully, that you understand when the notices and so on have to be served, and if they have to be served a certain way.
Then do the draft letters and diaries when you have to send them out. Had similar with a client a few years back who i advised to do this, they didn't and the next thing was they were tied for another 3 years due to the rolling contract clause and notice being served at the wrong time.
Remember that these are COMMERCIAL business to business contract and so UCTA '77 does not apply and, within reason, they can impose whatever terms and conditions they like in the contract provided someone is stupid enough to sign it...
This is an even hotter area of the law than ever before with things the way they are and everyone trying to strip unnecessary costs.
I am not a lawyer
I would investigate whether you can make a claim against the former employees for their negligence..
If their employment contract required them to be diligent and efficient in such matters then could this be a loss to the employer caused by a breach of contract?
I would (if it is legal to do so) certainly look to add a clause to the employment contract along the lines of "if the employee causes a loss to the employer through negligence, then the the employer will invite the employee to a disciplinary meeting and may also make a claim for some or all of the losses" and that "this clause of the agreement extends to 12 months following the cessation of employment"
Good luck
I would investigate whether you can make a claim against the former employees for their negligence..
If their employment contract required them to be diligent and efficient in such matters then could this be a loss to the employer caused by a breach of contract?
I would (if it is legal to do so) certainly look to add a clause to the employment contract along the lines of "if the employee causes a loss to the employer through negligence, then the the employer will invite the employee to a disciplinary meeting and may also make a claim for some or all of the losses" and that "this clause of the agreement extends to 12 months following the cessation of employment"
Good luck
TurricanII said:
I am not a lawyer
I would investigate whether you can make a claim against the former employees for their negligence..
If their employment contract required them to be diligent and efficient in such matters then could this be a loss to the employer caused by a breach of contract?
I would (if it is legal to do so) certainly look to add a clause to the employment contract along the lines of "if the employee causes a loss to the employer through negligence, then the the employer will invite the employee to a disciplinary meeting and may also make a claim for some or all of the losses" and that "this clause of the agreement extends to 12 months following the cessation of employment"
Good luck
How do you invite a non-employee to a disciplinary hearing when they have ceased employment?I would investigate whether you can make a claim against the former employees for their negligence..
If their employment contract required them to be diligent and efficient in such matters then could this be a loss to the employer caused by a breach of contract?
I would (if it is legal to do so) certainly look to add a clause to the employment contract along the lines of "if the employee causes a loss to the employer through negligence, then the the employer will invite the employee to a disciplinary meeting and may also make a claim for some or all of the losses" and that "this clause of the agreement extends to 12 months following the cessation of employment"
Good luck
Obviously I did not put in every minute detail - the above clause is a suggestion to provide a solution to this IN FUTURE.
With hindsight:
You might stipulate in the employment contract that actions causing unnecessary financial loss are one example of negligence and are a disciplinary matter. Then, after a full stop, you state in the employment contract that a claim may made against the former employee up to 12 months after cessation of employment should any negligence come to light.
The contract has benefits for both parties - the company and the employee, and I am sure you can agree to certain binding conditions that survive AFTER the employment.
Without hindsightL
I would weigh up the possible success of of a letter from the lawyer advising that negligence has been uncovered which constitutes a breach of the contract in force during their employment, and inviting them to attend a meeting to discuss, inviting them to bring legal representation and warning that a claim for damages may ultimately be made against them
With hindsight:
You might stipulate in the employment contract that actions causing unnecessary financial loss are one example of negligence and are a disciplinary matter. Then, after a full stop, you state in the employment contract that a claim may made against the former employee up to 12 months after cessation of employment should any negligence come to light.
The contract has benefits for both parties - the company and the employee, and I am sure you can agree to certain binding conditions that survive AFTER the employment.
Without hindsightL
I would weigh up the possible success of of a letter from the lawyer advising that negligence has been uncovered which constitutes a breach of the contract in force during their employment, and inviting them to attend a meeting to discuss, inviting them to bring legal representation and warning that a claim for damages may ultimately be made against them
Edited by TurricanII on Wednesday 9th November 22:49
Edited by TurricanII on Wednesday 9th November 22:54
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